Technicals | Jul 24 2024
Earlier today, Tony Sycamore, Market Analyst, IG updated his views and thoughts on financial markets, including the technical analysis updates below.
All material has been re-published with permission and does not by association represent FNArena’s views (we have none, we simply report).
First Up, Nasdaq100
Into the end of last week, the Nasdaq100 tested the uptrend support at 19,500/400, coming from the April 16,973 low.
As noted previously, “A rebound is possible if the Nasdaq100 can hold above support at 19,500/400.”
While the bounce from the 19,500/400 support has been tepid so far, if the Nasdaq100 continues to hold above 19,500/400, we can’t rule out a retest of the 20,690 high.
Aware that a sustained break below support at 19,500/400 would open the way for a deeper pullback towards weekly uptrend support at 18,500.
Australia: ASX200
On Monday, the ASX200 fell back to support at 7910/00, the level that capped it for three and a half months prior to its recent break higher.
Providing the ASX200 holds above 7900 (on a sustained basis), a retest and break of last week’s record high at 8083 is possible.
However, if the ASX200 were to see a sustained break below 7900/7850, it would expose the rally to last week’s 8083 high as a false break higher and warn that a deeper pullback is underway.
WTI Crude & Gold
WTI Crude Oil finished lower at US$76.96 (-1.84%), its lowest daily close since mid-June.
With the peak demand of US driving season in the rearview mirror, tepid growth data in China and optimism around a cease-fire in Gaza building, crude oil appears destined for a test of uptrend support at US$74.00.
Gold finished at US$2409 (0.55%), snapping its four-day losing streak.
The formation last week of a “loss of a momentum” weekly candle negated our bullish bias in gold and warned of the possibility of a deeper decline towards range lows US$2300/2275 area.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
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